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Post Info TOPIC: "Retrenchment" from an Employer point of view
Anonymous

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"Retrenchment" from an Employer point of view
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Hi 

Please could you assist.

We are a small SMME, employed a Manager for 10 months but found that business was struggling so owner decided to manage himself.

What are the legal implications if any.  Would severance or retrenchment package be required and if not, what notice period should be given

 

Thanks in advance

 



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Anonymous

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A notice must be provided indicating that there will be a meeting to discuss the reasons for the retrenchment, the criteria for selection, the options of redeployment, the prospects of re-employment etc. That meeting should be a constructive one, rather than a mere explanation by the employer that there is no prospect of a continued employment relationship. Thereafter, it is up to the employer to give a time period for when employment will be terminated if that is the final decision. This can be as little as a week, depending on the circumstances.

 

Severance is equal to one week's pay for every completed year of employment. In this case, there has not been a year of employment, but it is recommended that at least a week's salary be provided.



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Anonymous

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Hi

 

The company I currently work for has been sold a month ago.The new owners have consulted with us to inform us that our positions in Durban will no longer be available but we can apply for positions in Jhb.If we apply we are not guaranteed to get the position.We all are Durban based and no one wants to relocate.Please advise what are our rights as we all have been working for more than 5 years and more.



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